The following exchange be tween former New Jersey Govs. Brendan T. Byrne and Tom Kean took place in a teleconference last week.

Q: How much of an impact have the long hiatus in the gubernatorial campaign and the public's continued preoccupation with the events and aftermath of Sept. 11 had on the candidates?

BYRNE:
It's remarkable the ability Bret Schundler has to put his foot in his mouth even when he's not campaigning. The statement he made about New Jersey's response to the World Trade Center disaster - saying our State Police didn't respond, and when they did they sat on their behinds and did nothing - is evidence of that. And it's consistent with putting his foot in his mouth on other issues. Later, when it came out that they did a heroic job, he tried to get his foot out, but I don't think he could. Even you didn't try to defend that, Tom, and I admired you for it.

KEAN:
He misspoke on that one. He was trying to lay out a plan for the state to upgrade its emergency response. In fact, we have a number of heroes in New Jersey's police, fire service and emergency personnel who did a wonderful job. But, to answer the question, the campaign is markedly different. McGreevey is helped because he was out in front, so he stays where he is. On the other hand, the issues have totally changed. I'm not so sure citizens are interested in whether or not there's a tax cut. What they're looking for now is a strong leader in the mold of Giuliani - and someone who can create jobs. Our economy is in trouble and we need a governor who can attract jobs and keep the ones we have. That may benefit Schundler.

BYRNE:
You think people are looking for leadership from a candidate, namely Schundler, who wants to reject a New Jersey Supreme Court order to build schools - which would, by the way, not only create jobs but fulfill our educational mandate? He's saying the Supreme Court of New Jersey is worth ignoring, and he's unconstitutionally interpreting the constitution. Is that the leadership we're looking for?

KEAN:
That's not exactly what he said. I support the present Supreme Court decision, although I think previous Supreme Court decisions on this subject have been misguided. But Schundler's saying the people who ought to make such decisions are not those in black robes but those elected by the people - in other words, the governor and the Legislature.

BYRNE:
And ignore the mandate of the court?

KEAN:
He may be appealing parts of that decision.

BYRNE:
That decision is not appealable. But is that the kind of leadership you want?

KEAN:
A number of governors have appealed Supreme Court decisions over the years. He would have the right to appeal and to go to the Legislature for a remedy.

BYRNE:
The Legislature can amend the constitution, but it can't amend a constitutional decision by the court.

KEAN:
I would never want to argue with a great constitutional lawyer like you. But ultimately, the judges of what should be changed in the constitution are the Legislature and the governor. They passed it, they can amend it. It can happen, and has happened in the past.

BYRNE:
Nobody is going to amend it to shortchange kids. And Schundler also is promoting all this spending, like tax relief, half a billion for senior citizens . . .

KEAN:
What spending are you talking about?

BYRNE:
Tax relief, taking down Parkway toll booths. If you have a budget and you take a half billion out of it . . .

KEAN:
We need tax relief. Both candidates say that. Getting some tax relief at the present will save jobs and create more.

BYRNE:
It will create more debt.

KEAN:
It will create more jobs and more spending. People will buy new cars . . .

BYRNE:
And if you think they can do a half-billion-dollar cut and not affect the budget, you're overextending your faith in Schundler.

KEAN:
There's no question that if you cut tax burdens and put money back in people's pockets, you'll help New Jersey's economy. You can't increase taxes in a time of recession. Unfortunately, that's what the Democrats have done before, and I'm afraid they'll do it again.

BYRNE:
Tax revenues have gone down. Do you blame . . .

KEAN:
I blame a declining economy, and that's the best time to cut taxes. You and I have always agreed that those who have increased debt in times of prosperity were wrong.

BYRNE:
Whitman increased debt.

KEAN:
So did Florio. This is a different time. In times of recession you put money back in people's pockets.

BYRNE:
After defending Whitman for seven years, you're now admitting the obvious?

KEAN:
We extended debt under two governors, Florio and Whitman. Both borrowed too much.

BYRNE:
And now you say we borrow to get out of a recession?

KEAN:
That's the only way you can justify it. Unless you can get money back in people's pockets and get them working again, you will not be able to sustain the economy.

BYRNE:
I sustained the economy by employing 40,000 people in Atlantic City, and you criticized me for it.